Anxious eyes are trained on West Coast ports

Farmers, retailers, tug owners could lose

By PAUL NYHAN, SEATTLE POST-INTELLIGENCER REPORTER

Published 10:00 pm, Tuesday, September 3, 2002

Longshore workers and shippers are threatening to plunge West Coast ports into disarray, as their labor dispute could spark slowdowns and even a shutdown of shipyards that would hurt everyone from farmers to tugboat operators.

Businesses are watching negotiations between the International Longshore and Warehouse Union and employers that remained stalled yesterday. The talks broke off abruptly Sunday, and there were no signs of new talks last night.

Yesterday, union members were at work moving cargo as usual in Seattle, Los Angeles and elsewhere. Union officials met yesterday to debate their options, but did not announce any decisions, according to Steve Stallone, a spokesman for the Longshoremen.

"From what we can tell, it's normal operations," Port of Seattle spokesman Mick Shultz said yesterday.

Around the country, companies are anxious because the dispute raises the specter of a shutdown at West Coast ports, through an employer-led lockout or worker slowdown.

A shutdown would disrupt tens of billions of dollars in cargo that flows through the ports and threaten the national economy.

For example, wheat farmers are eager to take advantage of a market that has bushel prices up for the first time in years. Although some farmers have already begun to ship this year's crop, a number will continue to do so through the beginning of next year.

That could all come to a halt, however, if West Coast ports close down.

"That would be a pretty serious blow again ... if we were in a situation where the price is strong and we cannot move our product," said Perry Dozier, immediate past president of the Washington Association of Wheat Growers.

About 90 percent of the state's wheat is exported. In the past, farmers have lost a number of their customers to other countries during government sanctions. Some worry that a port strike would allow foreign farmers to take their market share once again.

"If Portland is shut down, it would be a disaster," said Ben Barstow, who farms about 15 miles north of Pullman. "If Wal-Mart closes, you'll go to Kmart or the next best thing. The customers who are used to buying out of Portland will go somewhere else to get needs their needs filled."

The Crowley Maritime Corp. is also keeping a close eye on the talks.

"We have tug service up and down the West Coast from north Puget Sound to Long Beach. ... Any kind of strike would obviously impact the vessel activity, which would impact our business," said Mark Miller, Crowley's director of corporate communications.

Retailers are also worried about any disruptions. But, many stores have been stockpiling goods for months, in case the ports close.

"I don't think we are going to have to worry about what we are going to buy the kids for Christmas," said Scott Smallman, managing director of investments for U.S. Bancorp Piper Jaffray.

President Bush could postpone the economic pain by invoking an 80-day cooling off period. That's because Bush could claim a shutdown threatens to interfere with the nation's public health and safety, says Gary Chaison, who teaches industrial relations at Clark University in Worcester, Mass.

That would not be the case if members of the Machinists union struck The Boeing Co, Chaison adds.

Although a Boeing strike would threaten workers and regional economies, it would not be on the same scale, he said.

Bush may have the legal authority, but he may not have the political will.

After trying to convince steelworkers, carpenters and other union workers they can trust the Bush administration, the president may not want to jump into the middle of a labor fight, Chaison adds.

Democratic Gov. Gary Locke and other political leaders have urged Bush not to intervene.

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"I think he would be very hesitant to get involved, because he is trying it make friends with labor right now," Chaison.

Instead, Bush could summon both sides to the White House if a shutdown seems imminent, Chaison said.